Richardie Kelley v. North East Insurance Company
2017 ME 166
Me.2017Background
- On Feb. 21, 2009, Kelley was bitten in the face by a dog that was inside a car; the car was not being operated and Snyder (the named insured on a North East auto policy) was not present, driver, passenger, or owner of that car.
- Kelley sued Snyder and McCann (co-owner of the dog); the parties stipulated to a $100,000 judgment against Snyder.
- North East denied defense and indemnity to Snyder under the auto policy.
- Kelley filed a reach-and-apply action under 24-A M.R.S. § 2904 seeking to satisfy her judgment from Snyder’s auto policy.
- The Superior Court granted summary judgment for North East, finding (1) Snyder was not an “insured” for this incident and (2) Kelley’s injury did not arise from an “auto accident” as defined by the policy.
- Kelley appealed; the Supreme Judicial Court reviewed de novo whether the underlying judgment arose from a claim covered by the policy.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the dog bite injury is covered as arising from an "auto accident" under the policy | Kelley: "Auto accident" is broad and includes injuries that arise out of the use of a vehicle, so the dog bite in the car is covered | North East: "Auto accident" means an unintended injurious event involving an automobile; this bite had no causal connection to operation or use and was not an auto accident | Court: "Auto accident" interpreted by plain meaning — an unintended injurious occurrence involving a vehicle — does not cover this dog bite; judgment for insurer affirmed |
Key Cases Cited
- Langevin v. Allstate Ins. Co., 66 A.3d 585 (clarifies reach-and-apply review: identify basis of liability in underlying judgment, then compare to policy coverage)
- Union Mut. Fire Ins. Co. v. Commercial Union Ins. Co., 521 A.2d 308 (interpreting "use" language in auto policies; court explains it is inapposite here because case addressed a different contractual clause)
- Cookson v. Liberty Mut. Fire Ins. Co., 34 A.3d 1156 (directs that unambiguous insurance terms are given their plain and commonly accepted meaning)